Market Closes - March 16, 2015

Posted on Mar 16, 2015
CBOT futures closed mixed as market factors are pointing in different directions. The US Dollar Index weakened today after reaching a new multi-year high on Friday. Despite this, U.S. energy futures fell sharply as more people believe crude supplies will continue to grow. The Brazilian soybean harvest is at its midpoint and their supplies are increasingly fulfilling global demand.

Wheat futures rose strongly on short-covering by the spec funds who have a huge short position in Chicago Wheat futures. Part of the reason for a rally is concern that southern Plains soil moisture levels are unfavorable as temperatures soared to the 80s today in KS and NE. Weekly wheat export inspections were also strong.

Corn and soybean futures have dropped back to near the price lows set at the beginning of February. A drop below those lows could encourage selling.

Cattle futures closed lower but well off the day’s lows. Strength in boxed beef supported the market, offsetting the follow-through selling from Friday’s sharp drop. Cash feedlot trade will likely be slow to develop. Choice up 1.14 at 245.26; Select up 0.99 at 245.06

Lean Hog futures also recovered from early losses, supported by the pork market. FOB Plant Pork closed up .88 at 68.36. Hog futures continue to search for a market bottom but supplies are large.

Livestock producers need to keep an eye on the avian influenza situation as Kansas is now the 4th state to have cases. The Kansas cases are on the Missouri border. There are many importing countries who ban poultry from the affected states. The risk of a spreading situation is that more chicken is forced onto the U.S. market at lower prices, displacing beef and pork.

Corn May -1 379; Jly -1 387; Dec -1 404 Bean May -5 969; Jly -4 974; Nov -2 951 Meal May -3 324; Oct -2 315 Oil -10 3039 Wheat May +12 514; Jly +13 516 KC +16 555; MGE +13 581 Oats unch 278 Rice -5 1052

LC Apr -107 15320; Jun -30 14497; Oct -17 14662 FC Mar -70 21242; May -82 20890; Oct -82 20777 LH Apr +10 6220; Jun +82 7625; Oct +10 6657 Milk April -1 1539; May -8 1502

US$ -.5%

Dow +228 17977 SP +28 2081 NAS +58 4930 Tran +151 9097 VIX -.39 15.61 -2.4%

WTI -96 4388 Brent -123 5344 Gas -3 173 NG +2 275 HO -1 170 Eth unch 145 Gold +1 1153 Slvr +14 1563

2-yr unch 0.653% 5-yr -.028 1.554% 10yr -.021 2.089% 30yr -.037 2.657%

Lexington Auction Weighted Average Report for 03/16/2015 Receipts: 942 Last Monday: 597 Year Ago: 662 Compared to last week steer calves under 550 lbs sold 5.00 to 10.00 higher; with 300-400 lbs sharply higher on an active market with very good demand for stocker calves with some farmer participation in the market; over 550 lbs sold steady to firm. Heifer calves under 500 lbs sold sharply higher with very good demand; over 500 lbs sold steady with good demand. With plenty of moisture in the ground and warmer temperatures this week the spring rush for stocker calves has started. Quality was good through attractive today. Yearling steers and heifers lightly tested. Slaughter cows and Slaughter bulls sold 1.00 to 2.00 lower with moderate demand.

This week’s supply included 22 percent that weighed over 600 lbs. 25 percent steers and 21 percent bull calves 0.0 percent Holstein Steers and 41 percent heifers of total recorded feeder supply. 114 head of slaughter cows with 90 percent going to slaughter. 14 head of slaughter bulls with 98 percent going to slaughter.

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Tagged Post Topics Include: Economics, Market updates